Do you need GAP Title Insurance?

by Nick 31. July 2012 17:02

When you buy title insurance, can you buy insurance for the GAP?

There is normally a period of time after the closing where the deed is not yet recorded. During this time, the seller can have liens or other items filed that affect the buyer's title. This period of time, from the closing to the recording is called the GAP.

So, do we offer GAP coverage for this time period?

ANSWER: It is not a question of offering GAP coverage to a buyer.

The GAP is already a covered risk in the 2006 Policy Forms so there is no need for an extra fee for coverage. The GAP is a Covered Risk in #10 on the Owners Policies and #14 on the Lender Policies.

Don't let someone try to sell you something that is already included.

Of course, if they don't get the owner's coverage, the GAP period is another risk the buyer takes on themselves.

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